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Unformatted text preview: and or replacing the machine, which costs c R and occurs instantaneously which corresponds to making an immediate transition to state 1. Machine in operation for one period in state i costs c ( i ), and the state of the machine at the beginning of the next period becomes j with probability p ij , j = i,i +1 ,...,K . The objective is to minimize the expected total discounted cost from period 1 to period N . Formulate this problem as a Dynamic programming to characterize the optimal operating strategy. 1...
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This note was uploaded on 03/16/2012 for the course IEOR 466 taught by Professor Richard during the Spring '12 term at Columbia.
 Spring '12
 Richard

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